eBay

strange*highways · ‎10-09-2021

For many eons I have used paypal to pay my sellers.

Is this costing the sellers money ?

Would they save on fees if I paid directly through managed payments with a credit card ?

Thank You

marnotom! · ‎10-09-2021

1. Yes

2. No

reallynicestamps · ‎10-09-2021

Sellers pay fees to the payment processor.

From 2002-2015 that was Paypal which was wholly owned by eBay.

So the sellers' fees for payment processing went to eBay.

In 2015 eBay was forced to spin off Paypal.

EBay continued to use PP as their payment processor but now those fees went to PP.

This had no effect on either buyers or sellers, just on eBay's bottom line.

EBay moved to getting payment processing back in-house introducing Managed Payments beginning in 2020.

So now eBay once again receives those seller fees.

None of this has any effect on buyers, with the possible exception that MP actually has more ways to pay, having added ApplePay and GooglePay to buyer options.

Apparently PP started raising rates to their remaining sellers as of August 2021.

lotzofuniquegoodies · ‎10-10-2021

@reallynicestamps wrote:
Sellers pay fees to the payment processor.
From 2002-2015 that was Paypal which was wholly owned by eBay.
So the sellers' fees for payment processing went to eBay.
In 2015 eBay was forced to spin off Paypal.
EBay continued to use PP as their payment processor but now those fees went to PP.
This had no effect on either buyers or sellers, just on eBay's bottom line.
EBay moved to getting payment processing back in-house introducing Managed Payments beginning in 2020.
So now eBay once again receives those seller fees.

None of this has any effect on buyers, with the possible exception that MP actually has more ways to pay, having added ApplePay and GooglePay to buyer options.

Apparently PP started raising rates to their remaining sellers as of August 2021.

It would be interesting to know how an eBay's buyers payments and etc's processed with PayPal generate revenue? Are there hidden charges? I can't see PayPal continueing to do so out of the goodness of their heart. Or is eBay paying a fee to PayPal which inturn eBay passes along in our seller fees? Something to make one say hmmm?

-Lotz

reallynicestamps · ‎10-10-2021

I'd make the assumption that eBay is paying exactly the same fees to PP as they did from 2015-2021.

But with the addition of ApplePay and GooglePay, which I gather are anonymizers like PP, and with more and more buyers using credit cards directly (and chargebacks when they are unhappy), that that fee is dropping as an expense for eBay, superceded by fees to other financial companies.

strange*highways · ‎10-11-2021

My concern was that if I paid with paypal the sellers would pay more in fees than if I paid directly using my credit card via managed payments. If this is not the case I will continue to use paypal. Thank You everyone.

marnotom! · ‎10-11-2021

Managed Payments builds the PayPal fees into the Final Value Fees for sellers, just as it would if the buyer paid directly with a credit card or used Apple/GooglePay.

femmefan1946 · ‎10-11-2021

You have more protection as a buyer (on any venue) using Paypal (with a 180 day Dispute period) backed by your credit card (which has chargeback policies with differing deadlines.)